diff --git a/.github/run-e2e-tests/action.yml b/.github/run-e2e-tests/action.yml
new file mode 100644
index 000000000..de6857be4
--- /dev/null
+++ b/.github/run-e2e-tests/action.yml
@@ -0,0 +1,51 @@
+name: 'Run e2e tests'
+description: 'Activate python venv and run e2e tests'
+
+inputs:
+  env:
+    description: 'Test environment'
+    required: true
+  keyword:
+    description: 'Run tests by keyword (-k)'
+    required: false
+    default: 'test_'
+  markers:
+    description: 'Run tests by markers (-m)'
+    required: false
+    default: 'not active_flow and not passive_flow and not probability'
+  mc_epoch:
+    description: 'MC epoch to test (committee tests)'
+    required: false
+  log_level:
+    description: 'Log CLI level'
+    required: false
+    default: 'info'
+  init_timestamp:
+    description: 'MC initialization timestamp in seconds'
+    required: false
+    default: '0'
+
+runs:
+  using: composite
+  steps:
+    - name: Run tests
+      shell: bash
+      run: |
+        if [ -n "${{ inputs.mc_epoch }}" ]; then
+          mc_epoch_switch="--mc-epoch ${{ inputs.mc_epoch }}"
+        fi
+
+        cd e2e-tests
+        source venv/bin/activate
+        pytest --blockchain substrate \
+          --env ${{ inputs.env }} \
+          --stack ${{ inputs.env }} \
+          --log-cli-level ${{ inputs.log_level }} \
+          -k "${{ inputs.keyword }}" \
+          -m "${{ inputs.markers }}" \
+          --init-timestamp ${{ inputs.init_timestamp }} \
+          $mc_epoch_switch \
+          --decrypt \
+          --json-report \
+          --json-report-summary \
+          --junitxml=junit_report.xml
diff --git a/.github/wait-for-epoch/action.yml b/.github/wait-for-epoch/action.yml
new file mode 100644
index 000000000..cd62db545
--- /dev/null
+++ b/.github/wait-for-epoch/action.yml
@@ -0,0 +1,21 @@
+name: 'Wait for epoch'
+description: 'Wait for epoch in local environment'
+
+inputs:
+  epoch:
+    description: 'Expected epoch'
+    required: true
+
+runs:
+  using: composite
+  steps:
+    - name: Wait for epoch
+      shell: bash
+      run: |
+        epoch=$(docker exec cardano-node-1 cardano-cli query tip --testnet-magic 42 | jq -r .epoch)
+        while [ $epoch -lt ${{ inputs.epoch }} ]; do \
+          echo "Epoch: $epoch" && \
+          sleep 10 && \
+          epoch=$(docker exec cardano-node-1 cardano-cli query tip --testnet-magic 42 | jq -r .epoch); \
+        done
+        echo "Epoch: $epoch"
\ No newline at end of file
diff --git a/.github/workflows/modules/local-environment-tests.yml b/.github/workflows/modules/local-environment-tests.yml
index a5eddcf47..bca8fe55c 100644
--- a/.github/workflows/modules/local-environment-tests.yml
+++ b/.github/workflows/modules/local-environment-tests.yml
@@ -1,4 +1,4 @@
-name: Deploy and test aganst local-environment
+name: Deploy and test against local-environment
 
 on:
   workflow_call:
@@ -13,8 +13,10 @@ on:
 jobs:
   local-environment-tests:
     runs-on: ubuntu-latest
+    env:
+      TEST_ENVIRONMENT: demo
     steps:
-    - name: Checkout master 
+    - name: Checkout master
       uses: actions/checkout@v4
       with:
         path: ./partner-chains-master
@@ -57,11 +59,108 @@ jobs:
         cp -r ./partner-chains-node-* ./partner-chains-master/dev/local-environment/configurations/partner-chains-cli/overrides/partner-chains-node
         cp -r ./partner-chains-smart-contracts*/* ./partner-chains-master/dev/local-environment/configurations/sidechain-release-bundle/overrides/
         cd ./partner-chains-master/dev/local-environment
-        bash setup.sh --non-interactive --overrides --postgres-password=postgres --node-image=${{ inputs.image }}
+        bash setup.sh --non-interactive --overrides --postgres-password=azMpOp4mTqhlKDmgCVQr --node-image=${{ inputs.image }}
         docker compose up -d
     
-    - name: Run tests
-      run: #TODO i.e. python ./tests.py
+    - name: Checkout e2e tests
+      uses: actions/checkout@v4
+      with:
+        repository: input-output-hk/sidechains-tests
+        token: ${{ secrets.ACTIONS_PAT }}
+        ref: ETCM-8119/run-tests-on-ci
+        path: e2e-tests
+    
+    - name: Setup python and dependencies
+      run: |
+        cd e2e-tests
+        sudo apt update
+        sudo apt install -y software-properties-common
+        sudo add-apt-repository ppa:deadsnakes/ppa
+        sudo apt update
+        sudo apt install -y python3.10 python3.10-venv python3.10-dev
+        sudo update-alternatives --install /usr/bin/python3 python3 /usr/bin/python3.10 1
+        curl -L --silent https://github.com/getsops/sops/releases/download/v3.7.3/sops_3.7.3_amd64.deb > sops.deb && sudo dpkg -i sops.deb && rm sops.deb
+        python -m venv venv
+        source venv/bin/activate
+        pip install -r requirements.txt
+
+    - name: Wait for the PC node 1 to start
+      run: |
+        while ! docker exec cardano-node-1 [ -e /shared/cardano.ready ]; do sleep 1; done
+        echo "Cardano network is ready! Waiting for Partner Chain first node to start..."
+        INIT_TIMESTAMP=$(docker exec cardano-node-1 cat /shared/cardano.start)
+        echo "INIT_TIMESTAMP=$INIT_TIMESTAMP" >> $GITHUB_ENV
+        while ! docker exec partner-chains-node-1 [ -e /shared/partner-chains-node-1.ready ]; do \
+          epoch=$(docker exec cardano-node-1 cardano-cli query tip --testnet-magic 42 | jq -r .epoch) && \
+          echo "Epoch: $epoch" && \
+          sleep 10; \
+        done
+
+    - name: Run smoke tests
+      uses: ./partner-chains-master/.github/run-e2e-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        keyword: "test_get_status or test_get_params"
+
+    - name: Wait for epoch 3
+      uses: ./partner-chains-masters/.github/wait-for-epoch
+      with:
+        epoch: 3
+
+    - name: Run registration tests
+      uses: ./partner-chains-master/.github/run-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        keyword: "test_register_candidate or test_deregister_candidate or test_add_permissioned_candidate or test_remove_permissioned_candidate"
+        init_timestamp: ${{ env.INIT_TIMESTAMP }}
+
+    - name: Wait for epoch 4
+      uses: ./partner-chains-master/.github/wait-for-epoch
+      with:
+        epoch: 4
+
+    - name: Run registration tests
+      uses: ./partner-chains-master/.github/run-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        keyword: "test_register_candidate or test_deregister_candidate or test_add_permissioned_candidate or test_remove_permissioned_candidate"
+        init_timestamp: ${{ env.INIT_TIMESTAMP }}
+
+    - name: Wait for epoch 5
+      uses: ./partner-chains-master/.github/wait-for-epoch
+      with:
+        epoch: 5
+
+    - name: Run all tests
+      uses: ./partner-chains-master/.github/run-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        mc_epoch: 4
+        init_timestamp: ${{ env.INIT_TIMESTAMP }}
+
+    - name: Wait for epoch 6
+      uses: ./partner-chains-master/.github/wait-for-epoch
+      with:
+        epoch: 6
+
+    - name: Run all tests
+      uses: ./partner-chains-master/.github/run-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        mc_epoch: 5
+        init_timestamp: ${{ env.INIT_TIMESTAMP }}
+
+    - name: Wait for epoch 7
+      uses: ./partner-chains-master/.github/wait-for-epoch
+      with:
+        epoch: 7
+
+    - name: Run all tests
+      uses: ./partner-chains-master/.github/run-tests
+      with:
+        env: ${{ env.TEST_ENVIRONMENT }}
+        mc_epoch: 6
+        init_timestamp: ${{ env.INIT_TIMESTAMP }}
     
     - name: Stop partner-chains-demo
       run: docker compose down --volumes
\ No newline at end of file
diff --git a/dev/local-environment/configurations/genesis/shelley/genesis.json b/dev/local-environment/configurations/genesis/shelley/genesis.json
index c14830b67..eb7d2be1f 100644
--- a/dev/local-environment/configurations/genesis/shelley/genesis.json
+++ b/dev/local-environment/configurations/genesis/shelley/genesis.json
@@ -1,5 +1,5 @@
 {
-  "activeSlotsCoeff": 0.2,
+  "activeSlotsCoeff": 0.8,
   "epochLength": 120,
   "genDelegs": {
     "4090c4d9554ab626a30a393ae3dd1fde40336e0515b1d4f430d6ae92": {
diff --git a/dev/local-environment/modules/partner-chains-nodes.txt b/dev/local-environment/modules/partner-chains-nodes.txt
index 85bbbe978..6806aae1a 100644
--- a/dev/local-environment/modules/partner-chains-nodes.txt
+++ b/dev/local-environment/modules/partner-chains-nodes.txt
@@ -14,7 +14,7 @@
       GENESIS_COMMITTEE_UTXO: "781cb948a37c7c38b43872af9b1e22135a94826eafd3740260a6db0a303885d8#0"
       GOVERNANCE_AUTHORITY: "e8c300330fe315531ca89d4a2e7d0c80211bc70b473b1ed4979dff2b"
       CARDANO_SECURITY_PARAMETER: "5"
-      CARDANO_ACTIVE_SLOTS_COEFF: "0.2"
+      CARDANO_ACTIVE_SLOTS_COEFF: "0.4"
       MC__FIRST_EPOCH_NUMBER: "0"
       MC__FIRST_SLOT_NUMBER: "0"
       MC__EPOCH_DURATION_MILLIS: "120000"
@@ -49,7 +49,7 @@
       GENESIS_COMMITTEE_UTXO: "781cb948a37c7c38b43872af9b1e22135a94826eafd3740260a6db0a303885d8#0"
       GOVERNANCE_AUTHORITY: "e8c300330fe315531ca89d4a2e7d0c80211bc70b473b1ed4979dff2b"
       CARDANO_SECURITY_PARAMETER: "5"
-      CARDANO_ACTIVE_SLOTS_COEFF: "0.2"
+      CARDANO_ACTIVE_SLOTS_COEFF: "0.4"
       MC__FIRST_EPOCH_NUMBER: "0"
       MC__FIRST_SLOT_NUMBER: "0"
       MC__EPOCH_DURATION_MILLIS: "120000"
@@ -84,7 +84,7 @@
       CHAIN_ID: "0"
       GENESIS_COMMITTEE_UTXO: "781cb948a37c7c38b43872af9b1e22135a94826eafd3740260a6db0a303885d8#0"
       CARDANO_SECURITY_PARAMETER: "5"
-      CARDANO_ACTIVE_SLOTS_COEFF: "0.2"
+      CARDANO_ACTIVE_SLOTS_COEFF: "0.4"
       MC__FIRST_EPOCH_NUMBER: "0"
       MC__FIRST_SLOT_NUMBER: "0"
       MC__EPOCH_DURATION_MILLIS: "120000"
@@ -121,7 +121,7 @@
       CHAIN_ID: "0"
       GENESIS_COMMITTEE_UTXO: "781cb948a37c7c38b43872af9b1e22135a94826eafd3740260a6db0a303885d8#0"
       CARDANO_SECURITY_PARAMETER: "5"
-      CARDANO_ACTIVE_SLOTS_COEFF: "0.2"
+      CARDANO_ACTIVE_SLOTS_COEFF: "0.4"
       MC__FIRST_EPOCH_NUMBER: "0"
       MC__FIRST_SLOT_NUMBER: "0"
       MC__EPOCH_DURATION_MILLIS: "120000"
@@ -158,7 +158,7 @@
       CHAIN_ID: "0"
       GENESIS_COMMITTEE_UTXO: "781cb948a37c7c38b43872af9b1e22135a94826eafd3740260a6db0a303885d8#0"
       CARDANO_SECURITY_PARAMETER: "5"
-      CARDANO_ACTIVE_SLOTS_COEFF: "0.2"
+      CARDANO_ACTIVE_SLOTS_COEFF: "0.4"
       MC__FIRST_EPOCH_NUMBER: "0"
       MC__FIRST_SLOT_NUMBER: "0"
       MC__EPOCH_DURATION_MILLIS: "120000"